Integrated Logistics in Australia Sector Market Research Report Now Updated by IBISWorld

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Technological developments will be a key driver of growth in the Integrated Logistics in Australia sector over the next five years. For this reason, industry research firm IBISWorld has updated its report on the Integrated Logistics sector in Australia.

The Integrated Logistics sector in Australia provides door-to-door transport, storage and distribution services. It includes transport operators such as trucking and railroad companies, storage facilities, freight forwarders, customs brokers and infrastructure operators. Integrated networks have developed steadily since the late 1980s, when medium and large operators began purchasing other companies in the supply chain. According to IBISWorld industry analyst Caroline Finch, “this growth was supported by the implementation of automation and tracking technology across the supply chain, which has increased the potential for participants to realise economies of scale and scope”. These technologies have allowed the sector to keep pace with major markets, which have adopted increasingly lean inventory practices over the past decade.

Over the past five years the sector's revenue is forecast to grow at a compound annual rate of 3.7%, to reach $101.0 billion. The largest trend behind the lift in sector performance over this period has been the recovery of demand from major markets. “In the base year of 2008-09, sector performance went backwards as the global financial crisis and a slower domestic economy caused retailers, wholesalers and manufacturers to cut orders of new stock and run down inventories,” says Finch. This resulted in a decline in imports, and falling demand for long-distance trucking and warehouses. The sector has since recovered, but not without a period of lower-than-average margins. In the current year the sector is expected to expand by 2.5%.

The challenges of the past five years put pressure on individual sector participants, and consolidation of sector enterprises has been an outcome of this. The sector is considered to have a low level of market concentration, with Toll Holdings Limited and Australian Postal Corporation the only major companies. With increased investment required to keep pace with major market expectations, larger players have been more successful at adapting. Efficiency gains are forecast to remain central to the Integrated Logistics sector's performance in the next five years. Technological developments will be a key driver of sector growth, with stock tracking and monitoring, GPS location, voice-picking and increased automation all expected to improve sector productivity and help the seamless flow of stock through the supply chain.

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.